I have just read that companies routinely review facebook and myspace activity when screening prospective candidates. One allegation is that if your profile is blocked to non-friends, they may ask you to log in in front of them to let them have a look. This is roughly equivalent to showing up at my home and demanding an opportunity to sift through my trash and check for signs of moral turpitude like blended Scotch or subversive literature like Fahrenheit 451...

I was disagreeing with the article up until the privacy section. A quick google, facebook, and myspace search for anything publicly embarassing to the company is just good due diligence. If something's in your public profile, it's part of your professional image.